FxWirePro: NZD/USD comatose around 21-EMA, focus on RBNZ for impetus

NZD/USD chart - Trading View 

Spot Analysis:

NZD/USD was trading in narrow range at 0.70 at 06:25 GMT

Previous Week's High/ Low: 0.7088/ 0.6952

Previous Session's High/ Low: 0.7047/ 0.6995

Fundamental Overview:

Focus is on the Reserve Bank of New Zealand (RBNZ) policy meeting next week to provide the pair a meaningful direction.

The pair has been extending sideways grind and kiwi bulls hope for a rate rise next week and the promise of more to break out.

The RBNZ's last hike of 50 basis points was in May 2000. A rise of 25 basis points to 0.5% on August 18th is now fully priced in.

A hawkish surprise is what can provide some significant price moves. 

Technical Analysis:

- GMMA indicator shows major trend is bearish, while minor trend is neutral

- Price action is below cloud and some major moving averages

- Bullish divergence on RSI on the daily charts keeps scope for upside

- Death Cross (bearish 50-DMA crossover on 200-DMA) could limit gains

Major Support and Resistance Levels:

Support - 0.6957 (55-week EMA), Resistance - 0.7105 (200-DMA)

Summary: NZD/USD trades pivotal at cloud resistance and 55-week EMA support. RBNZ policy meet next week will be in focus for clear direction.